Watch Desk posted an update
Taiwan’s manufacturing sector kept expanding in October, but shortages of key components are delaying some AI server shipments, the Chung-Hua Institution for Economic Research says, according to the Taipei Times.
Why it mattersThe manufacturing PMI eased to 62.5 from 63.4, remaining above the 50-point mark that signals expansion. The report identifies substrates as well as memory chips as supply constraints, with a delay in one component capable of holding up an entire server. So the AI build-out has a very physical bottleneck: getting all the parts into the same finished machine. The Taipei Times reports that the order backlog index also slowed, even as new orders remained strong.
Discuss: Should AI companies prioritise securing more component supply, even if that means paying more or building extra inventory?
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